subject: Allied Announces Two New Fundings For Local Staffing Companies [print this page] Allied announces the details of our third funding for March:
Facility Amount: $100,000
Date Funded: 3/11/10
The Company: A start-up staffing company located in Fort Worth, TX specializing in providing quality personnel, and project management as necessary, to perform comprehensive Right of Way services and Property Title services, such as property research, title history searches, ownership clarification, records preparation, landowner contact, negotiation services, route planning, and condemnation support.
The Issue: The company needed growth capital to bid on and accept new opportunities. The company recently received a new contract and is looking to begin planning for the North Texas Tollway Authority. They will also be bidding on work for the North Tarrant Expressway toll-road expansion.
The Solution: This company was referred by a banker to Eli Gross at Allied. The company's limited history would not allow them to secure the bank line of credit they needed to accept these new jobs.
The Win: With the funding provided by Allied, the company now has the growth capital they need to bid on and accept additional work and a financial partner that can grow with them until they become bankable. In addition, the referring banker received a referral fee, and the bank will receive ongoing fees for the life of the deal with Allied.
Allied announces the details of our fourth funding for March:
Facility Amount: $2,000,000
Date Funded: 3/12/10
The Company: A returning Allied client located in Keller, TX that provides staffing services primarily for the aviation industry, but also for other markets such as aerospace, financial, accounting, information systems, logistics, warehousing and data services.
The Issue: In 2009, the company paid Allied off and obtained a traditional bank line of credit. However, as their company continued to grow, combined with the change of many bank covenant requirements, the owners believed that factoring was a better alternative for their business. In fact, because Allied had provided additional services for the company, such as checking customer credit, providing accounts receivable reporting, performing collection calls to their customers and sending out statements, many of these back office responsibilities had deteriorated within their organization after they resumed these responsibilities. The company found that without these services from Allied, their invoices were taking longer to pay or simply were not being paid at all, adding additional cash flow constraints.
The Solution: With the combination of no bank line increase to fund their growth capital, their receivables aging out and money coming in slower, this company quickly realized the true value of the services Allied has to offer. Allied provides valuable, cost-saving services in addition to funding that can sometimes be overlooked by clients. In this case, these services were a driving force in the client's return to Allied.
The Win: By returning to Allied, the company can continue to grow their business while relying on Allieds additional services to relieve the company from many of these internal administrative responsibilities.
